Is it too late to buy Roblox stock?
Roblox has a market capitalization of US$37b, so it's too big to fly under the radar ... It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you ...
Is Roblox stock poised to rally soon?
So there is sort of a pause in that rally," Fiona Cincotta ... flat as a pancake after gains in travel-related and healthcare stocks offset commodity-linked weakness. Positive headlines on ...
Should you buy rblx stock?
Roblox Corporation finds support from accumulated volume at $73.90 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested. This stock has average movements during the day and with good trading volume, the risk is considered to be medium.
Are Roblox stocks doing good?
Roblox Corporation ... the RBLX stock Overweight. In the meantime, 0 analyst(s) believe the stock as Underweight and 1 think it is a Sell. Thus, investors eager to increase their holdings of the company’s stock will have an opportunity to do so as ...
Is Roblox growing?
But with vaccinations ramping up and people returning to more outdoor activities, Roblox's growth appears to be slowing.
Is Roblox's growth slowing down?
But with vaccinations ramping up and people returning to more outdoor activities, Roblox's growth appears to be slowing. Worse still, decelerating growth is arguably not reflected in Roblox's stock price. Even after today's losses, its shares are currently trading for roughly 18 times analysts' revenue estimates for 2021.
NYSE: RBLX
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Roblox's long-term prospects look promising, but there are some short-term concerns
Online game platform and game creation system Roblox ( RBLX -8.75% ) has performed well since its direct listing last year -- its shares began trading at around $60 and subsequently more than doubled over the next few months to hit a high of $141.60.
A solid quarterly result but with weaker growth
The COVID-19 pandemic has been disrupting industries of all kinds, especially airlines and hospitality, for almost two years now. For some companies though, COVID-19 has actually helped accelerate growth.
NYSE: RBLX
While solid, these numbers were weaker when compared to the previous quarters. For perspective, revenue grew 127% and 140%, respectively, in the prior two quarters. Besides, Roblox reported that total engagement hours in November 2021 -- while up 32% year over year -- came in weaker than the 4 billion hours clocked in August 2021.
Investors are moving away from growth stocks
The last two years were a great time to own growth stocks, with highflyers like Tesla rising more than tenfold between 2020 and 2021. The rising tide, however, has been lowered toward the second half of last year.
What's next for Roblox
Overall, Roblox's weaker growth and the change in investor sentiments toward high growth (but loss-making stocks) likely caused its share price to fall. Still, the company's long-term prospects remain largely intact.
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What happened
Shares of Roblox (NYSE: RBLX) were down 18.4% week to date through Thursday's close, according to data provided by S&P Global Market Intelligence. In its latest fourth-quarter report, the gaming platform posted decelerating growth in key operating metrics and issued a weak outlook for the year ahead.
So what
The more important metric that analysts watch is bookings, a non-GAAP (adjusted) measure of revenue. Growth in this metric has decelerated significantly over the last four quarters, from 161% in the year-ago quarter to just 20% in the fourth quarter.
Now what
These are likely just near-term speed bumps, as Roblox laps spikes in demand a year ago. While bookings growth is slowing, it's important to remember that time spent on the platform is still above 10 billion hours, which is close to record highs for the company. Overall, the collapse in the share price can be blamed on valuation concerns.
What happened
Shares of Roblox (NYSE: RBLX) were down 9.8% as of 10:32 a.m. ET on Wednesday, following the release of November engagement metrics.
So what
Investors were disappointed to see slowing growth in daily active users (DAUs) and time spent on the platform -- two key operating metrics that investors closely watch for insights about how well Roblox is attracting and retaining users.
Now what
The most important outcome of slowing engagement trends is how it impacts user monetization, since the more time spent on the platform is supposed to correlate to higher sales of Robux, the virtual currency used to unlock new experiences on the platform.
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